Company Press Release
Computer Marketplace Enters Definitive
Agreements to Acquire SSPS Inc.
CORONA, Calif.--(BUSINESS WIRE)--June 21, 1999--Computer Marketplace Inc.
(OTC BB: MKPL - news), a Delaware corporation based in California, Monday announced that its E-Taxi
subsidiary has entered into definitive agreements to acquire SSPS Inc. (''SSPS'').
The operating divisions of SSPS which consist of TriStep, Gig2Gig.com, ITWorldnet.com, and Impact
Team International provide contingent workforce solutions and payroll services primarily to rapidly
growing technology firms. The consolidated revenues for SSPS were approximately $39 million for the
year ended Dec. 31, 1998.
At the closing of the transactions contemplated by the definitive agreements, the company will issue
approximately 2.9 million shares of its Common Stock and pay cash and notes of approximately $1.5
million for SSPS. The closing is subject to the satisfaction of certain conditions, including without
limitation, the execution and delivery of employment agreements with certain members of the senior
management team of SSPS, the release of a principal stockholder of SSPS of his guaranty of certain
indebtedness of SSPS, the waiver of certain rights of first refusal to purchase the shares of SSPS capital
stock owned by a principal stockholder, the termination and release of certain obligations of SSPS under
existing employment agreements and other customary conditions to closing. It is presently anticipated that
the company's acquisition of SSPS will occur during July 1999.
Separately, the company clarified that an announcement last week by Cobra Technologies Inc. to acquire
a Massachusetts-based company named, ''Computer Marketplace Inc.'' is in no way related to the
company.
Computer Marketplace is executing its plan to develop an Internet Web site community, commonly
referred to as a vertical portal, dedicated to serve the needs of the Small Office Home Office (SOHO)
market in the United States. In April 1999, the company acquired E-Taxi Inc., the parent corporation of
Techstore LLC, an online reseller of computer hardware and software as well as certain consumer
electronics products.
Safe Harbor Statement
Investors should carefully consider the preceding information as well as other information contained in
this news release before making an investment in the Common Stock. Information contained in this news
release contains ''forward-looking statements'' which can be identified by the use of forward-looking
terminology such as ''believes,'' ''expects,'' ''may,'' ''should,'' or ''anticipates'' or the negative thereof or
given that the future results covered by the forward-looking statements will be achieved. The preceding
matters constitute cautionary statements identifying important factors with respect to such
forward-looking statements, including certain risks and uncertainties that could cause actual results to
vary materially from the future results covered in such forward-looking statements. Other factors could
also cause actual results to vary materially from the future results covered in such forward-looking
statements.
Contact:
Gateway Advisors Inc.
Brian Burns, 408/280-0800, Ext. 321 |
